National Express makes £126m US buy
Transport provider National Express has acquired Ohio, US-based Petermann Partners in a deal worth $200m (£126.1m). Birmingham-headquartered coach, bus and train operator National Express said the move would increase its US student transportation fleet by 3,300 vehicles.
National Express said one of its wholly-owned subsidiaries would buy the student transport operator from Macquarie Global Opportunities Partners, L.P. and Petermann's management.
Petermann Partners is the fifth largest provider of student transport services in the US. Alongside its headquarters in Cincinnati, Ohio, the company operates out of 66 locations across ten states.
National Express said the deal would increase its US student market footprint by 20 per cent.
The £126.1m fee will be paid on a cash and debt-free basis said National Express, which will fund the acquisition through existing credit facilities and cash.
The acquisition is expected to complete by the end of 2011, subject to receipt of the relevant regulatory approvals. National Express said it expects the deal to be immediately earnings accretive.
National Express said the acquisition of Petermann was part of the company's "targeted expansion plans".
It added: "Petermann's strategy is characterised by a focus on safety, operational excellence, customer service and employee satisfaction and, with its high quality, well-invested fleet, it represents an excellent fit with the group's current student transportation business in the United States and Canada, and will enhance the broader group."
At the year ending 30 June 2011, Petermann generated revenue of $149.9m, normalised operating profit of $13.5m, and had gross assets at 30 June 2011 of $254.5m.
Dean Finch, group chief executive of National Express, said: "We are delighted to acquire such a high quality business in Petermann. Our recent improved performance has enabled us to take advantage of this opportunity.
"It's a great strategic fit for our existing school bus business, complementing our current operations, introducing us to new states and giving us a foothold in the paratransit market. This is an important step in delivering our strategy of growth in North America."
